Concord Coalition: 14.4 Trillion Dollar Deficit

Friday, August 28, AD 2009

14.4 trillion

In this earlier post I reported that the Obama administration is predicting a 9 trillion dollar deficit over the next ten years.  Now, the non-partisan Concord Coalition is predicting here a 14. 4 trillion dollar deficit over the next 10 years.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
Continue reading...

Stagflation or Hyperinflation?

Friday, June 12, AD 2009

laffer-monetarybase

Hattip to Ed Morrissey at Hot Air .  Economist Arthur Laffer, he of the Laffer Curve, sounds the tocsin regarding the incredible expanision of the money supply.

“But as bad as the fiscal picture is, panic-driven monetary policies portend to have even more dire consequences. We can expect rapidly rising prices and much, much higher interest rates over the next four or five years, and a concomitant deleterious impact on output and employment not unlike the late 1970s.

About eight months ago, starting in early September 2008, the Bernanke Fed did an abrupt about-face and radically increased the monetary base — which is comprised of currency in circulation, member bank reserves held at the Fed, and vault cash — by a little less than $1 trillion. The Fed controls the monetary base 100% and does so by purchasing and selling assets in the open market. By such a radical move, the Fed signaled a 180-degree shift in its focus from an anti-inflation position to an anti-deflation position.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
Continue reading...